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Simple English definitions for legal terms
class director
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A quick definition of class director:
A class director is a person who helps manage and guide a group or organization. They are usually elected or appointed to a board that makes important decisions for the group. There are different types of directors, such as inside directors who are also employees of the organization, and outside directors who have no direct interest in the organization. A class director may also be elected to represent a special-interest group, like preferred stockholders. Some directors are appointed by a court to help resolve conflicts within a board of directors.
A more thorough explanation:
A class director is a member of a corporate board who is elected or appointed to represent a specific group's interests, such as preferred stockholders. Their term on the board is staggered with those of other directors to make a hostile takeover more difficult.
- A preferred stockholder group elects a class director to represent their interests on the corporate board.
- A company's board of directors includes several class directors whose terms are staggered to prevent a hostile takeover.
These examples illustrate how a class director is a specific type of director who represents a particular group's interests and has a unique term on the board to protect against hostile takeovers.